Slight reprieve for Kenyans as Epra reduces pump prices by Sh2

Kenyans will get a slight reprieve following the reduction of fuel prices for the next one month.

The Energy and Petroleum Regulatory Authority (Epra) on Monday lowered the cost of the three products that it regulates by Sh1.95 per litre of super petrol, Sh2.20 per litre of diesel and Sh2.40 a litre of kerosene. 

The drop was helped by a mix of factors, including the decline in the cost of products globally as well as a deal reached by the government and the Middle Eastern oil firms that supply the country with petroleum products under the government-to-government deal.

This saw the oil firms reduce freight and premium costs.

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Following the reduction, super petrol will retail at Sh174.63 per litre in Nairobi from Sh176.58.

Diesel will retail at Sh164.86 from Sh167.08 per litre while kerosene will retail at Sh148.99 per litre from Sh151.39.

“In the period under review, the maximum allowed petroleum pump prices for super petrol, diesel and kerosene decrease by Sh1.95 per litre, Sh2.20 per litre and Sh2.40 per litre respectively,” said Epra in a statement yesterday.

It is the first time this year that Epra has reduced pump prices, following a Sh2 increase in January that negated a sustained drop over 14 months and remained unchanged in February and March.

The drop is on account of reducing product prices internationally but also helped by a recent deal between the government and the international oil firms supplying the country with fuel.

Landed costs, which is the cost of fuel when it reaches Mombasa before taxes and local oil marketer margins are loaded, reduced to Sh79 per liter of super petrol from Sh82.87 in March, Sh82.85 per litre of diesel from Sh88.32, while kerosene stood at Sh81.39 from Sh87.39 per litre a month earlier.

“The average landed cost of imported super petrol decreased by 4.89 per cent… in February. Diesel decreased by 6.45 per cent… while kerosene decreased by 6.35 per cent,” said Epra.

Three international oil firms have been supplying Kenya with petroleum products under the government-to-government (G-G) oil deal

The companies, which started supplying Kenya products in April 2023 on a six-month credit as the country tried to arrest the slide of the shilling, reduced freight and premium by between six and 13 per cent, which was expected to reflect in local pump prices. 

In the deal, Kenya also extended the contract with the three firms – Saudi Aramco, Abu Dhabi National Oil Company (Adnoc) and Emirates National Oil Company (Enoc) — which will now continue supplying fuel to the end of 2027.

In the April–May pricing cycle, Epra has retained subsidies across the three products, which also played a part in pump price reduction.

Super petrol has been stabilised to the tune of Sh4.66 per litre, diesel Sh6.09 and Sh6.18 for kerosene.

Epra draws funds from the Petroleum Development Levy Fund to stabilise petroleum products.

The kitty is funded by motorists who pay Sh5.40 per litre of petrol and diesel and 40 cents per litre of kerosene.